2019 (7) TMI 925

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....t') dated 01/03/2016. 2. The grounds of appeal raised by the Revenue are as follows: 1. That on the facts and in the circumstances of the case the ld. CIT(A) erred in deleting the disallowance made by the A.O. u/s 36(1)(va) read with 2(24)(x) under the head late payment of Employees Contribution to PF/ESI. 2. That on the facts and in the circumstances of the case the ld. CIT(A) erred in deleting addition / disallowances made by the A.O. under the head interest on TDS, VAT, Entry Tax and professional Tax. 3. That on the facts and in the circumstances of the case the ld. CIT(A) erred in deleting addition / disallowances made by the A.O. under the head interest on service tax and service tax RCM. 4. The a....

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....sed the material available on record. We note that the assessee deposited employees' contribution to PF & ESI before the due date of filing of return of income u/s 139(1) of the Act. If the assessee deposits PF and ESI before the due date of filing of return of income then it would be considered sufficient compliance and no addition should be made on account of late payment of PF and ESI. For that we rely on the judgment of the Jurisdictional Hon'ble Calcutta High Court in the case of Vijay Shree Ltd. in I.T.A. No. 245/Kol/2011, wherein it was held that if the assessee deposited PF and ESI within the due date prescribed it u/s 139(1) of the Act then no disallowance should be made. That being so, we decline to interfere in the order passe....

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....l tax are allowable expenditure u/s 37(1) of the Act, as these expenses normally incurred by the assessee in doing the business. We also note that the interest on arrears of sales tax is compensatory in nature and therefore allowable expenditure u/s 37(1) of the Act as has been held by the Hon'ble Supreme Court in the case of Lachmandas Mathurdas vs. CIT reported in 254 ITR 799 (SC) wherein it was held as follows: In taking decision the High Court had placed reliance on its Full Bench's decision in Saraya Sugar Mills (P.) Ltd. v. CIT [1979] 116 ITR 387 (All.). The said judgment of the Full Bench had been reversed by the larger Bench of the High Court in Triveni Engg. Works Ltd. v. CIT [1983] 144 ITR 732/15 Taxman 452 (All.) (FB....